1. What is the current minimum wage for tipped workers in Arizona?

Currently, the minimum wage for tipped workers in Arizona is $9.00 per hour.

2. Is there a difference between the tipped minimum wage and regular minimum wage in Arizona?

Yes, there is a difference between the tipped minimum wage and regular minimum wage in Arizona. The tipped minimum wage for employees who regularly receive tips is $9.00 per hour, while the regular minimum wage for other employees is $12.00 per hour (as of January 2021). This means that tipped employees can be paid a lower hourly rate as long as their hourly wages plus tips equal at least the regular minimum wage. However, if their tips do not bring them up to the regular minimum wage, their employer is required to make up the difference.

3. How much do tipped workers make per hour in Arizona?

As of January 2021, the minimum wage for tipped workers in Arizona is $9 per hour. This is lower than the state’s regular minimum wage of $12.15 per hour.

4. Has the minimum wage for tipped employees increased in Arizona recently?

Yes, the minimum wage for tipped employees in Arizona has increased recently. It was raised from $8.05 per hour in 2020 to $9.00 per hour in 2021 as part of a gradual increase mandated by the Fair Wages and Healthy Families Act passed in 2016. The tipped minimum wage will continue to increase annually until it reaches $15.00 per hour in 2026.

5. Are there any pending changes to the tipped minimum wage in Arizona?

As of May 2021, there are no pending changes to the tipped minimum wage in Arizona. The current tipped minimum wage in Arizona is $9.00 per hour, which is adjusted annually for inflation by the Industrial Commission of Arizona.

6. Can a tipped worker afford a living wage in Arizona?

It is difficult for a tipped worker to afford a living wage in Arizona, as the minimum wage for tipped workers in the state is currently $9.00 per hour. This is significantly lower than the state’s standard minimum wage of $12.15 per hour. With tips being unpredictable and not always reliable, it can be challenging for tipped workers to make enough money to support themselves and their families.

In addition, the cost of living in Arizona has been steadily rising in recent years, making it even more difficult for tipped workers to make ends meet on their current wages. According to the MIT Living Wage Calculator, a single adult in Arizona needs to earn at least $14.87 per hour to cover basic expenses such as housing, food, healthcare, and transportation.

Furthermore, many tipped workers do not have access to benefits such as health insurance or paid time off, making it even harder for them to save and build financial stability.

Overall, it can be said that it is challenging for a tipped worker to afford a living wage in Arizona due to low minimum wages and high costs of living in the state. Legislative efforts are ongoing to raise the minimum wage for both standard employees and tipped workers in Arizona, which would provide much-needed relief for these individuals.

7. How does Arizona’s minimum wage for tipped employees compare to neighboring states?

As of 2021, Arizona’s minimum wage for tipped employees is $9.00 per hour. This is higher than neighboring states such as New Mexico ($2.35 per hour), Utah ($2.13 per hour), and Nevada ($8.75 per hour). However, it is lower than California’s minimum wage for tipped employees, which is $14.00 per hour in certain industries.

8. Are employers required to make up the difference if a tipped worker’s wages fall below the standard minimum wage in Arizona?

Yes, employers are required to make up the difference if a tipped worker’s wages (which must be at least $3 below the standard minimum wage) do not reach or exceed the standard minimum wage ($11 in Arizona as of January 2021). This is known as the “tip credit” provision, where tips are counted towards meeting the minimum wage requirement but the employer is responsible for making up any difference.

For example, if a tipped worker earns $10 per hour in tips and receives a base wage of $5 per hour from their employer, they will have met the minimum wage requirement of $15 per hour. However, if they only earn $2 per hour in tips, their employer must make up the difference so that they receive at least $13 per hour.

This requirement applies to all tipped employees, regardless of whether they work in industries that typically rely on tipping such as food service or hospitality. Employers who fail to make up this difference may be subject to legal action and penalties from state labor agencies.

9. Do cities within Arizona have their own separate tipped minimum wage rates or is it consistent throughout the state?

Cities within Arizona do not have their own separate tipped minimum wage rates. The state’s minimum wage rate for tipped employees is consistent throughout all cities and counties.

10. Has there been any discussion of increasing the minimum wage for tipped employees in Arizona?

There has been some discussion and debate about increasing the minimum wage for tipped employees in Arizona. In 2016, voters approved Proposition 206, which increased the state’s minimum wage to $10 per hour by 2020 and also raised the tipped minimum wage to $7 per hour by 2023. However, there have been attempts to repeal or change this measure through legislation. In 2019, a bill was introduced that would allow employers to pay tipped workers below the minimum wage if they make at least $15 an hour including tips. This bill did not pass, but it highlights ongoing discussions and potential changes to the minimum wage for tipped employees in Arizona.

11. Does Arizona have a different minimum wage for servers versus other types of tipped workers?

No, Arizona does not have a separate minimum wage for servers. The state’s minimum wage of $12 per hour applies to all workers, including tipped employees.

12. How does Arizona’s current tipped employee minimum wage compare to federal standards and neighboring states’ rates?

As of 2021, Arizona’s current tipped employee minimum wage is $9.00 per hour, which is the same as the federal tipped employee minimum wage. However, this rate will increase to $11 per hour by January 2022.

In neighboring states, California has a minimum tipped employee wage of $13 per hour, Nevada has a minimum of $8.75 with benefits or $9.75 without benefits, and New Mexico has a minimum of $5.50 for employees who earn at least $30 in tips per month.

It should be noted that some cities within these states may have higher tipped employee wage rates that exceed their state’s minimum wage.

13. In Arizona, are employers allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees?

Yes, Arizona employers are allowed to use tips towards fulfilling their obligation to pay the standard minimum wage for employees. The current minimum wage in Arizona is $12 per hour, or $9 per hour for tipped employees who make at least $3 more than the minimum wage with tips included. This means that employers can pay tipped employees $9 per hour and use tips towards making up the remaining $3. However, employers must ensure that tipped employees make at least the full minimum wage of $12 per hour when combining their base rate and tips.

14. Is there a plan to increase the tip credit percentage in Arizona, which currently has one of the lowest rates nationwide?

There are currently no plans to increase the tip credit percentage in Arizona. In 2016, voters in the state approved Proposition 206, which increased the minimum wage and required employers to pay tipped employees at least $3 less than the minimum wage, rather than the previous $2.13. This ruling also requires that employers ensure their employees’ tips bring them up to at least the full minimum wage amount. Any future changes to the tip credit percentage would need to go through a similar ballot measure process, or be passed by state legislators and signed into law by the governor.

15. Are there exemptions from paying the state’s established tip credit rate for certain industries or professions in Arizona?

Yes, the following industries and professions are exempt from paying the state’s established tip credit rate in Arizona:

1. Employers of agriculture workers: Agricultural employers are required to pay at least the minimum wage and cannot take a tip credit.

2. Employers of domestic service employees: Domestic service employers are required to pay at least the minimum wage and cannot take a tip credit.

3. Educational institutions: Educational institutions, including elementary and secondary schools as well as colleges and universities, cannot take a tip credit for faculty or professional staff.

4. Charitable organizations: Charitable organizations with tax-exempt status under Section 501(c)(3) of the Internal Revenue Code cannot take a tip credit for employees who provide services on their premises.

5. Public employers: Employees of state, county, or municipal governments (including schools) are not subject to the state’s tip credit rate.

6. Tipped employees in certain industries: Some tipped employees in specific industries such as hairdressing and barbering may be exempt from the state’s tip credit rate if their employer is allowed to take a partial exemption under federal law.

7. Casino employees: Employees working in casinos or other gambling establishments are not subject to the state’s tip credit rate.

It is important for employers to consult with an experienced labor law attorney or review the guidelines provided by the Arizona Industrial Commission to ensure compliance with all applicable laws and regulations related to tipped employees.

16. Can legislators override local laws regarding the establishment of a separate tipped worker minimum wage rate in [State?

It depends on the state’s laws and regulations. In some states, legislators may have the power to override local laws regarding minimum wage rates. In other states, local governments may have the authority to set their own minimum wage rates. It is important to research the specific laws and regulations in place in [State] for an accurate answer.

17. Has Arizona recently adjusted its tip pooling laws affecting server wages?

Yes, Arizona recently passed a law that allows employers to include back-of-the-house employees in tip pooling arrangements. This change was made in response to a ruling by the Department of Labor that prohibited tip sharing with non-tipped employees. The new law, which went into effect on August 23, 2018, allows employers to create a tip pool that includes both tipped and non-tipped employees, as long as the employer pays all employees at least the minimum wage. However, tipped employees cannot be required to share tips with managers or supervisors.

18. How do Arizona’s current hourly wages for non-tipped workers compare with those applied specifically to restaurant personnel?

According to the National Restaurant Association, Arizona’s current hourly minimum wage for non-tipped workers is $11.00 and for tipped workers is $8.00, which is significantly lower than the standard minimum wage of $12.15 for non-tipped workers and $9.15 for tipped workers in the state.

Additionally, Arizona’s minimum wage for restaurant personnel working 30 hours per week or more is set at $6.50 per hour, which is slightly higher than the federal minimum wage of $5.15 per hour but still below the state’s general minimum wage.

Overall, Arizona’s hourly wages for non-tipped workers are relatively low compared to other states, and specifically within the restaurant industry they are lower than the standard minimum wage set by the state. This can potentially result in lower overall earnings for restaurant workers in Arizona compared to other states.

19. In Arizona, are separate restaurants and other establishments categorized differently with regards to applying differing hourly rates for employees who receive tips?

Yes, restaurants and other establishments in Arizona may be categorized differently when it comes to applying differing hourly rates for employees who receive tips.

Under the Fair Labor Standards Act (FLSA), employers are allowed to pay tipped employees a lower minimum wage as long as the employee’s tips bring their total earnings up to at least the standard minimum wage. However, there are different categories of tipped employees under the FLSA, including those who work in restaurants and those who work in other establishments.

In Arizona, tipped employees who work in restaurants or bars can be paid $3 less than the standard minimum wage of $11 per hour. This means that the employer only has to pay them a minimum of $8 per hour, as long as their tips bring their total hourly wages up to at least $11. On the other hand, tipped employees who work in other types of establishments, such as hotels or saloons, can be paid $5 less than the standard minimum wage of $12 per hour. This means they must be paid a minimum of $7 per hour, with tips bringing their total hourly wages up to at least $12.

It is important for employers to correctly categorize their employees and ensure they are paying them the correct minimum wage based on their job duties and the type of establishment they work in. Employees should also keep track of their tips and make sure they receive at least the minimum wage for hours worked if their tips do not bring them up to that amount.

20 Where can I access (or has anyone correlated) information about how each of the US states and territories have approached minimum wage laws for tipped workers?

The U.S. Department of Labor’s Wage and Hour Division (WHD) website has information on minimum wage laws for tipped workers in each state. The WHD enforces the Fair Labor Standards Act (FLSA), which sets the federal minimum wage and overtime pay requirements.

Each state also has its own labor department or agency that may have information on state-specific minimum wage laws for tipped workers. For example, the New York State Department of Labor has a webpage specifically dedicated to tipped employee wages.

There are also organizations such as the National Employment Law Project and the Economic Policy Institute that may have reports or articles on how states have approached minimum wage laws for tipped workers.